Top reasons for Ettington lease extension

Top reasons for lease extension now:

A Ettington lease depreciates with the years remaining on the lease.

The only way is down when it comes to Ettington lease terms. Ettington leaseholds that have a lease term shorter than eighty years will de-escalate in value even faster, and the cost to extend your lease will rise.

Ettington property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for decades to come.

Banks and Building Societies may not finance a property with a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet mortgage lenders start to become nervous at around 75 years. This may cause difficulties when you come to dispose of or remortgage your flat as it will be effectively unmortgageable. Even though you might have no imminent plan to sell but when you do your purchaser must hold off for two years before being able to start the legal procedures for a lease extension.

Get in touch with one of our Ettington lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with handle Ettington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Ettington Lease Extension Example Cases:

Charlie, Ettington, Warwickshire,

Charlie owned a conversion apartment in Ettington on the market with a lease of a few days over 61 years outstanding. Charlie informally contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Charlie to invoke his statutory right. Charlie procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.

Ettington case:

Mr and Mrs. A Moreau took over the lease of a ground floor flat in Ettington in October 2004. We are asked if we could approximate the price would be to extend the lease by ninety years. Identical flats in Ettington with 100 year plus lease were valued about £270,000. The mid-range amount of ground rent was £55 billed quarterly. The lease came to a finish on 24 August 2100. Given that there were 74 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.

Ettington case:

In 2009 we were called by Mr and Mrs. H Bennett who, having completed a ground floor apartment in Ettington in September 1999. We are asked if we could estimate the premium would be to extend the lease by 90 years. Comparable premises in Ettington with a long lease were in the region of £166,400. The average ground rent payable was £60 billed quarterly. The lease terminated in 2080. Having 54 years unexpired we calculated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 plus expenses.